Exports from Pakistan to India grew by 66% to $460 million during the period April-December 2012 against $277 million in the corresponding period last fiscal. This was also higher than $401 million, which was Pakistan’s total export to India in the entire fiscal 2011-2012.
On the contrary, the rate of growth of exports from India to Pakistan during April-December 2012 was only 16%. Share of Pakistan’s exports in India’s total trade has almost doubled since 2009-2010, according to a data released by the Directorate General of Commercial Intelligence and Statistics, Ministry of Commerce & Industry.
“The impressive increase in Pakistan’s exports during April-December 2012 reflects the benefits of the steps taken to enhance bilateral trade, and improvement of trade environment, aided by SAFTA (South Asia Free Trade Area) tariff reductions,” stated a press release by the High Commission of India in Islamabad.
Last year, both countries had also signed three agreements in areas of customs cooperation, mutual recognition of standards and redressal of trade grievances.
“A number of trade organizations in both countries have promoted, especially in 2012, greater exchange of trade and business delegations between India and Pakistan. Liberalized visa provisions pertaining to business persons will further facilitate such exchanges,” the release added.
On the other hand, while addressing FICCI, Robert D Hormats, US Department of State - Under Secretary for Economic Growth, Energy & Environment, said bilateral trade between both the neighbours has the potential to rise to $10 billion in the next three years if some of barriers owing to restrictions and regulations are removed.
"I believe that increased India-Pakistan trade is a key element in South Asia's connectivity with Afghanistan, Central Asia and beyond. This is part of the reason the bilateral gains made by India and Pakistan over the past two years are important, and indeed historic. Two-way trade at the Wagah border crossing - which I had the opportunity to visit on a recent trip - has increased by more than 50% in the last year alone," Hormats said.
Both sides have set a target to more than double bilateral trade within three years from current levels of $2.7 billion per annum to $6 billion by 2013-14.
